Premium Bonds provider NS&I has explained why it may appear some Bond holders win more often than others.
People with Premium Bonds are entered into a monthly prize draw rather than getting an interest rate with a conventional savings account.
The odds of winning for each £1 Bond are 24,000 to 1 and each Bond has an equal chance of getting a prize in the monthly draw, including one of the two £1million jackpot prizes.
A person asked the group in a tweet about the odds of winning.
User @ClaireWith2023 asked NS&I: “Has there been a change to the algorithm that picks the winning holders?
“Looking at the prizes for June (I suspect the same is true historically also) only holders with significant value (30k to 50k) actually win these large prizes. I’ve held Bonds for 25+ years and never won.”
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The group said in response: “We have not made any significant changes to how ERNIE [the system which selects the winners] operates when it comes to the prize draw.
“Every draw comes down to luck and no single Bond has more or less chance to win. It will seem the larger holdings win more often, as they have more chances to win.”
A person can hold up to £50,000 in Bonds and people often use their winnings to buy more Bonds to increase their chances of winning again.
The prize draw takes place at the start of each month with two £1million prizes, as well as large prizes of £100,000 and £50,000.
Sarah Coles, head of personal finance at Hargreaves Lansdown, spoke to Express.co.uk about Premium Bonds as a long-term investment.
She said: “The chances of winning are largely the same every month. In fact, it will fluctuate depending on how many more people buy Bonds – making a win less likely – and how many new prizes are announced – making it more likely.
“But aside from this, you have the same chance of winning in your first draw as you do in your 50th.
“There are plenty of people who win in their first month or two. One of the £1million winners last August had held the bond for just 12 months.”
She warned savers may “pay a price” for having Bonds as if a person does not win and get a return on their investment, they will effectively lose out on value because of inflation.
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